Citigroup’s $500 Million Blunder Ends in Victory for the Bank

A federal appeals court saved Citigroup Inc. from an epic blunder that became the talk of Wall Street, rejecting a ruling that Revlon Inc. creditors could keep more than half a billion dollars the bank accidentally sent them.

After a decision process one expert compared to “The Twilight Zone,” a trio of judges in Manhattan on Thursday overturned the trial court’s surprise decision early last year that the lenders -- which include Brigade Capital Management LP, HPS Investment Partners LLC and Symphony Asset Management -- didn’t have to return $504 million the bank mistakenly wired them in 2020.

The ...